Royal Enfield commences operation of assembly unit in Nepal

Motorcycle maker Royal Enfield on Friday announced the commencement of operations of its assembly unit in Nepal.

The unit has been set up in collaboration with the Triveni Group of Nepal.

The complete knocked down (CKD) assembly unit has an annual capacity of 20,000 units. It will begin operations with local assembly of the new Classic 350 and the SCRAM 411 for Nepal, Royal Enfield said in a statement.

''Located in Birgunj, the new facility is the Royal Enfield's fifth CKD assembly unit in the world - after Brazil, Thailand, Colombia and Argentina,'' the company said.

Royal Enfield CEO B Govindarajan said, ''This new CKD facility in Nepal is in line with our ambitious global expansion strategy of investing in markets with huge potential to grow.'' The motorcycle market in Nepal is on a confident rebound journey, and Royal Enfield sees huge potential for the market to grow substantially, the company said.

''Pre-pandemic the motorcycle segment in Nepal was nearly 1.7 million units per year, with almost 60-65 per cent of that being motorcycles sold in the above 150 cc premium segment,'' it added.

With the market expected to grow at 10 per cent - 15 per cent in upcoming years, the company believes that the trend of premiumisation of motorcycles will only increase in the country.

Royal Enfield has its main manufacturing and ancillary facilities located in Tamil Nadu.